Simplified Employee Pension (SEP) IRAs

A Simplified Employee Pension (SEP) IRA* is an easy-to-setup and easy-to-administer
retirement plan. There’s minimal paperwork and no annual reports to the
IRS. There are generous funding limits, and contributions are fully tax-deductible.

Because of the plan’s simplicity, affordability and flexibility (contributions can be stopped or started at any time) the SEP is great for small businesses, professionals and self-employed people. Of course, certain rules do apply:

Employees cannot contribute personally. Only employer contributions are permitted. If employee participation is important, consider the SIMPLE-IRA instead of the SEP-IRA.